ANDRITZ OPE (Overall Production Efficiency) Passion for cooperation and results

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1 ANDRITZ OPE (Overall Production Efficiency) Passion for cooperation and results PULP PAPER POWER We accept the challenge!

2 Table of contents INTRODUCTION Customer benefits ANDRITZ OPE * agreements References Summary * OPE is a mark of ANDRITZ registered in countries including the United States and the European Union 2

3 The ANDRITZ GROUP Overview Company ANDRITZ AG, Graz, Austria (Group headquarters) More than 180 production and service sites worldwide Employees: approximately 17,700 worldwide (as of September 30, 2012) Order intake: 5,707 MEUR Key figures 2011 Sales: 4,596 MEUR Net income (including non-controlling interests): 232 MEUR Equity ratio (as of end of 2011): 21% Products and services Plants and services for hydropower stations, the pulp and paper industry, solid-liquid separation in the municipal and industrial sectors, the steel industry, and the production of animal feed and biomass pellets 3

4 ANDRITZ PULP & PAPER services Focus on the individual challenges of every project the unique enthusiasm we provide our promise of being committed the competences we demonstrate every day reaching our commonly defined goals 4

5 ANDRITZ PULP & PAPER services Organizational structure ANDRITZ GROUP Air Pollution Control Division Recovery & Power Division Fiber Technology Division Pulp Drying & Paper Division Pulping and Fiber Division Pulp & Paper Services Kraft and Paper Mill Services Division Engineered Wear Products Division Automation Solutions Division Maintenance Solutions Division Second Hand Solutions 5

6 ANDRITZ PULP & PAPER services Finding solutions to any challenge! Technical support, on-site services, engineered wear products, and specialized automation tools for all the major production systems in a pulp mill, paper mill and power island from a single organization. Also specialized equipment for saw mills. ANDRITZ services help achieve the highest equipment availability and optimum performance over the entire lifecycle. Services range from single replacement parts to comprehensive Overall Production Efficiency (OPE ) contract services for a process area or an entire plant. 6

7 ANDRITZ PULP & PAPER services Our service mission! We work together with our customers to maximize the process reliability and overall production efficiency of a plant. Together with ANDRITZ value-added services our customers achieve the highest plant availability, equipment reliability, and optimum performance over the entire life-cycle of the equipment. 7

8 Table of contents Introduction CUSTOMER BENEFITS ANDRITZ OPE agreements References Summary 8

9 CUSTOMER benefits OPE team - passion for cooperation and results Achieve overall efficiency of mill operations Achieve best possible availability Optimized production cost efficiency Maintain optimal maintenance operations with strategic partners Transferring value added knowhow between CUSTOMER and ANDRITZ Savings Energy consumption Chemical consumption Wood yield Maintenance costs Extra income Increased production Improved quality 9

10 Table of contents Introduction Customer benefits ANDRITZ OPE AGREEMENTS References Summary 10

11 ANDRITZ OPE agreements The CUSTOMER challenge The challenge for any mill or plant operator is to find a service partner who takes a broad approach to improve profitability by integrating operational and maintenance activities with overall production goals. To achieve this, the big picture issues of efficiency, availability, production costs, and optimal maintenance procedures need to be addressed between the respective strategic partners. 11

12 ANDRITZ OPE agreements The ANDRITZ solution ANDRITZ support customers in taking their pulp, paper, and power production equipment to a new level of performance by raising the Overall Production Efficiency (OPE ). We work closely with you to apply the most modern technologies and tools for achieving the best results. Together with your experts we review all your processes not just maintenance problems in order to improve your overall production and equipment efficiency. 12

13 ANDRITZ OPE agreements Raising the overall production efficiency Working partnership between the CUSTOMER and ANDRITZ A cooperation model in which both partners seek to maximize the mill s productivity and minimize costs CUSTOMER s and ANDRITZ s knowledge of processes and equipment is combined to benefit both parties Customers focus on improved pulp quality at lower costs - ANDRITZ has the same focus 13

14 Overall Production Efficiency is our common goal Mill Experts Definition of needs and objectives End product expertise Operation, process and maintenance expertise ANDRITZ Experts Process Expertise Equipment Expertise Benchmarking know-how of best maintenance practices Added Value of Cooperation (OPE ) Improved capacity utilization Improved availability performance Improved technical performance Increased actual production Cost efficiency Process savings 14

15 Table of contents INTRODUCTION Customer benefits ANDRITZ OPE agreements REFERENCES Summary 15

16 ANDRITZ OPE agreements Some examples of customer benefits during the last two years 2,36 M more income -> less production losses in cooking plant 1,89 M more income -> less production losses in cooking plant 1,38 M savings -> less production losses and lower production costs in screening plant 16

17 ANDRITZ OPE agreements Showcase OPE Agreement as a concept and technology competencies focusing on commonly agreed targets. Close and long term partnership with all levels in mill operation and maintenance Process and machinery experts to maximize the financial outcome Improved efficiency achieved thanks to top level availability Overall production efficiency balance between quality increase and variable cost reduction 17

18 ANDRITZ OPE agreements Metsä-Fibre Äänekoski, Finland It has been a very fruitful cooperation. Ilkka Poikolainen, production manager at Äänekoski mill. SPECTRUM Issue 21, 1/

19 OPE cooperation more than a decade 1/2 Customer s targets for cooperation Achieve overall efficiency for pulp mill operations, and simultaneously create cost savings Achieve best possible availability Optimized production cost efficiency Perform optimal maintenance operations implementation and resources utilization with strategic partners 19

20 OPE cooperation more than a decade 2/2 Production increased % Without major investments Increased daily production Minimizing shutdowns Higher efficiency in shutdowns Improved start up procedures Process Development Washing optimizing Optimized usage of bleaching chemicals Reduced energy consumption in lime kiln Reduced consumption of make up-lime Minimizing production losses 20

21 Table of contents INTRODUCTION Customer benefits ANDRITZ OPE agreements References SUMMARY 21

22 Summary Your benefits with ANDRITZ OPE team Product quality Maximum production Reduced life-cycle costs Millwide knowledge and experience Reliability and cost efficiency Continuous development Savings & Time Short and effective shutdowns Long intervals between shutdowns Successful start-ups Pre-planned actions in close cooperation with mill personnel Environment & Energy Increased safety, improved energy efficiency and reduced chemical and wood consumption to minimize environmental impact 22

23 Contact information Thank you! Firstname Lastname

24 Legal Disclaimer All data, information, statements, photographs, and graphic illustrations contained in this presentation are without any obligation to the publisher and raise no liabilities to ANDRITZ AG or any affiliated companies, nor shall the contents in this presentation form part of any sales contracts, which may be concluded between ANDRITZ GROUP companies and purchasers of equipment and/or systems referred to herein. ANDRITZ AG All rights reserved. No part of this copyrighted work may be reproduced, modified or distributed in any form or by any means, or stored in any database or retrieval system, without the prior written permission of ANDRITZ AG or its affiliates. Any such unauthorized use for any purpose is a violation of the relevant copyright laws. 24

25 ANDRITZ OPE agreements Any questions? For further information please contact: ANDRITZ Oy Finland ANDRITZ AG Austria ANDRITZ Inc. USA We accept the challenge!